FICA Tax Calculator: Calculate Social Security

A FICA tax calculator will help you to work out how much Social Security and Medicare tax you would pay on your wages in the USA. This tax is taken off your wages based on the Federal Insurance Contributions Act (FICA). The funds are used to help pay for various Federal programmes, including Social Security pension, disability, survivors and Medicare.

Most employees will have the FICA tax taken off automatically from their wages. The standard employee tax is 6.2% for Social Security and 1.45% for Medicare. This makes a combined total of 7.65%. The employer usually pays the same amount. This means there is a total of 15.3% between employee and employer. This doesn\'t include the relevant limits and extra taxes.

This calculator will help you work out how much employee Social Security and Medicare tax you would pay, and therefore what FICA would be taken off your wages. Knowing how much employee tax you would pay can help you when trying to work out what your wages would be. You can use this for hourly, annual or multiple jobs.

This calculator is designed to help you work out what your US payroll tax would be. The amount of tax taken off will depend on your income, employment status and current IRS rules.

How to use the FICA tax calculator

To help you work out how much FICA tax you would pay please follow the steps below:

Enter the gross amount of your wages. Enter what your annual wages or desired pay would be.

Select what year you want to calculate for. The annual Social Security wage limit will vary between years.

Select how often you are paid. This can be weekly, fortnightly, semi-monthly, monthly or annually.

If available enter additional wages. If you have more than one employer, you can enter your additional wages. Usually each employer will have its own Social Security limits.

If requested enter what Medicare information you have. This will include any information relating to Additional Medicare Tax such as your filing status and wages.

Click calculate to work out how much Social Security and Medicare tax you would pay. This will give you an idea of how much FICA tax, as an employee, you would pay.

This calculator will give you an idea of how much of your gross wages will be taken off for FICA tax. The calculator may not include your federal income tax, state income tax, health insurance, retirement contributions or other deductions.

FICA Tax Formula

FICA tax includes both Social Security and Medicare tax.

1. Social Security Tax

Most employees will pay 6.2% Social Security tax. This will be paid on the eligible wages up to the annual Social Security wage limit.

Social Security Tax = MIN (Eligible Wages, Annual Wage Limit) x 6.2%

The annual wage limit will be set by the Social Security Administration and can vary between years.

2. Medicare Tax

Employees will pay 1.45% Medicare tax on their eligible wages. There is no annual wage limit.

Medicare Tax = Eligible Medicare Wages x 1.45%

3. Total FICA Tax as an Employee

Total FICA Tax = Social Security + Medicare Tax.

If your wages are within the standard tax and below the Social Security wage limit.

Total FICA Tax = Eligible Wages x 7.65%.

Some high earners may have to pay an extra 0.9% Additional Medicare Tax. If you are an employee earning more than your threshold, your employer will usually start taking off the extra tax. If your wages from your employer are more than $200,000 in the calendar year, they will start taking off the extra tax. However, your final liability will depend on your filing status threshold.

Example

An employee in the USA earns $60,000 in annual wages. All of the wages are within the standard Social Security and Medicare tax. The employee does not have to pay any Additional Medicare Tax.

The following information is known:

Annual Gross Wages = $60,000

Social Security Tax Rate = 6.2%

Medicare Tax Rate = 1.45%

1. Social Security Tax

= $60,000 × 6.2% = $3,720

2. Medicare Tax

= $60,000 × 1.45% = $870

3. Total FICA Tax

= $3,720 + $870 = $4,590

The following table shows how much tax would be taken off your wages.

Tax Detail

Amount

Annual Gross Wages

$60,000

Social Security Tax

$3,720

Medicare Tax

$870

Total FICA Tax as an Employee

$4,590

Average Monthly FICA Tax

$382.50

Based on the information given, you would pay approximately $4,590 in FICA tax as an employee. This does not include any federal income tax, state or local taxes or other deductions from your wages.

As an employer, you would usually pay $4,590 in matching tax. This will be standard Social Security and Medicare tax.

What does the FICA tax calculator tell me?

A FICA tax calculator usually tells you three main pieces of information.

Social Security Tax – This is what you will pay as an employee. It will be calculated at 6.2% of your eligible wages up to the annual wage limit.

Medicare Tax – This is what you will pay as an employee. The standard rate is 1.45% of your eligible wages. There is no annual wage limit.

Total FICA as an Employee – This is how much you would pay in total for Social Security and Medicare tax. This will include any Additional Medicare tax if available.

Your total FICA tax will not include anything else. This will not include your federal income tax, state income tax, retirement contributions, health insurance or other deductions.

The amount of tax taken off during the year may vary. This will depend on whether you have multiple jobs or are paying Additional Medicare Tax.

Factors affecting the result

There are several factors which can affect your FICA tax.

Annual Wages – The higher your wages the more FICA tax you will pay. This will be up to the Social Security wage limit. Medicare tax will be charged on all eligible wages with no annual limit.

Social Security Wage Limit – This is the annual maximum amount of wages you can pay Social Security tax on. This will vary depending on the tax year.

Additional Medicare Tax – High earners may have to pay an additional 0.9% Medicare tax.

Multiple Employers – Each employer will usually take Social Security tax off your wages. If your total wages are over the annual wage limit then you may pay extra Social Security tax. This can be claimed as a credit if eligible.

Employee Status – Employees and the self employed will usually calculate their tax differently.

Tax Year – Check what the tax rate, limits and rules are for the year.

Type of Pay – Certain benefits, reimbursements and other pay may be treated differently.

Benefits of using a FICA tax calculator

A FICA tax calculator can help employees and employers understand what their payroll tax would be.

• Plan your pay – Work out how much Social Security and Medicare tax you would pay.
• Compare salaries – Work out how much payroll tax you would pay on different salaries.
• Plan your annual budget – Work out how much you would pay in FICA tax as an employee.
• Check your payroll – Work out how much you would pay compared to your pay stub.
• Understand employer costs – Work out how much your employer would pay in matching Social Security and Medicare tax.
• Plan for multiple jobs – Work out how much you may pay depending on how much you earn.
• Prepare your taxes – Have an idea of how much FICA tax is being taken off.
• If you are considering a salary increase you can work out how much more you may pay in Social Security and Medicare tax. Employers can also use this calculator to work out how much standard payroll tax they would pay.

Accuracy

The FICA tax calculator will give you an indication based on the information you enter. It will only be accurate if it uses the correct Social Security wage limit and payroll tax rules.

The standard calculation assumes that your wages will be subject to FICA tax. Some employment types, pay and benefits may have special rules or be exempt.

It may not include Additional Medicare Tax. This depends on whether you enter the required income and filing status. It may not include multiple employers, overpayment of Social Security tax, special employment types or self employed tax.

Self employed individuals will usually pay self employed tax. However, the standard rate of Social Security and Medicare will apply. You must ensure that the deductible amounts and wage limits are correctly handled.

FICA tax does not include your federal income tax or state/local payroll tax. This calculator cannot tell you your full take home pay.

Ensure you check what the requirements are for the current year by referring to IRS guidelines and the published Social Security wage limit.

FAQ

1. What is FICA tax?

FICA stands for Federal Insurance Contributions Act. It sets out payroll tax to help pay for Social Security and Medicare. Most employees in the USA pay this tax automatically.

2. What is the standard FICA rate for employees?

The standard rate for employees is 7.65%. This is made up of 6.2% Social Security and 1.45% Medicare. Social Security tax has an annual wage limit.

3. Are there any wage limits?

Social Security tax will only be paid up to the annual wage limit. Standard Medicare tax will usually be payable on all eligible wages with no annual limit. Additional Medicare Tax may apply.

4. Do employers pay FICA tax?

Yes. Employers will usually pay 6.2% Social Security tax and 1.45% Medicare tax. This will be on eligible employee wages. There may be additional payroll tax.

5. What is Additional Medicare Tax?

Additional Medicare Tax is an extra 0.9% charge on wages over your threshold. Employers will usually take this off once your wages from your employer are over $200,000 in the calendar year. The final liability will be based on your filing status threshold.

6. Do the self employed pay FICA tax?

Self employed individuals usually pay self employed tax. They may have to pay both the employee and employer portion. They will usually pay Social Security and Medicare tax. However, you must ensure the deductible amounts and wage limits are correctly handled.

7. Does FICA tax include federal income tax?

No. FICA tax is for Social Security and Medicare. Federal income tax will be separate along with any state or local income tax and other deductions.